Invesco VI Core Equity Fund - AIG.com

Annual Report to Shareholders

December 31, 2016

Invesco V.I. Core Equity Fund

The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: [email protected]. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund. A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov. Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/ proxysearch. The information is also available on the SEC website, sec.gov. Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd. This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing. Invesco Distributors, Inc. VICEQ-AR-1

Management’s Discussion of Fund Performance Fund during the reporting period. The largest contributor to Fund performance For the year ended December 31, 2016, Series I shares of Invesco V.I. Core Equity relative to the style-specific benchmark Fund (the Fund) underperformed the Russell 1000 Index, the Fund’s style-specific was Taiwan Semiconductor Manufacbenchmark. turing Company, a parts supplier to the Your Fund’s long-term performance appears later in this report. iPhone 7. During the year, the company benefited from a broader rally in technolFund vs. Indexes ogy companies and record profits as deTotal returns, 12/31/15 to 12/31/16, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower. mand for new iPhones fueled orders for Series I Shares 10.26% its processor chips. Analog Devices, a multinational semiconductor company, Series II Shares 10.02 benefited from better-than-expected S&P 500 IndexW (Broad Market Index) 11.96 W earnings in each of the past four quarters Russell 1000 Index (Style-Specific Index) 12.05 and positive annual growth estimates Q VUF Large-Cap Core Funds Index (Peer Group Index) 10.97 within the industry in the future. W Q Source(s): FactSet Research Systems Inc.; Lipper Inc. The largest individual detractor from the Fund’s performance versus the stylespecific benchmark was Allergan, a spekets sharply lower. Markets again recovMarket conditions and your Fund cialty pharmaceutical company. The comered, and major US equity indexes hit reDuring the year ended December 31, pany saw its stock price decline due to the cord highs during the summer. Following 2016, the US economy continued to the surprise outcome of the US presiden- cancellation of its planned merger with expand. US gross domestic product tial election, a stock market rally sent ma- Pfizer (not a Fund holding), earnings be(GDP) showed the US economy grew by low consensus estimates and greater unjor equity indexes to new record highs. 3.5% in the third quarter.1 However, The rally was led by financials, gaining on certainty about its organic growth rate. annualized GDP is expected to be much the belief that they might benefit from re- Another detractor from Fund perforlower. Employment data were mixed, mance for the year was Shire, a biotechduced federal regulation. In November, with a surprise uptick from 4.9% in nology company, which reported lower OPEC agreed to cut production for the August to 5.0% in September, but with first time in eight years, which helped sup- earnings and higher-than-expected sell2 unemployment ending the year at 4.7%. port higher oil prices. The Fed raised inter- ing, general and administrative costs. Oil prices traded in a range from the high Finally, the Fund’s conservative posiest rates by a quarter point in December $20s to the low $50s during the reporttioning and allocation to cash hampered 2016 — its only increase during the reing period.3 performance during the year. We have porting period.4 Major US stock market indexes posted been quite active in deploying cash durDuring the year, stock selection in the gains for the reporting period, with most ing periods of market volatility, and we information technology (IT), energy and major market indexes hitting record highs; consumer discretionary sectors delivered remain focused on putting these assets however, the markets were fairly volatile positive performance for the Fund. In ad- back to work. during the first half of the year. Stocks beThe Fund’s largest overweight position dition, overweight exposure to the gan calendar year 2016 on a negative relative to the Russell 1000 Index for the financials and energy sectors benefited note, driven by investor concerns about year was in the financials sector, and a the Fund. The largest detractors from economic weakness in China, falling oil slight overweight position in the health Fund performance relative to the Fund’s prices and uncertainty over the US Federcare sector. The Fund’s largest understyle-specific benchmark included stock al Reserve’s (the Fed) monetary policy. weight positions were in the consumer selection in the financials, health care Markets recovered in February and posted staples and energy sectors, and a slight and telecommunication service sectors. gains until June, when UK voters opted to underweight position in the industrials Stock selection in the strong-performleave the European Union, sending marsector. ing IT sector was advantageous to the

Performance summary

Portfolio Composition By sector

Top 10 Equity Holdings* % of total net assets

Information Technology Financials Health Care Consumer Discretionary Industrials Energy Consumer Staples Utilities Telecommunication Services Money Market Funds Plus Other Assets Less Liabilities

Invesco V.I. Core Equity Fund

21.4% 17.8 13.1 12.4 10.2 8.0 5.7 2.0 1.1 8.3

% of total net assets

1. American Express Co. 2. Taiwan Semiconductor Manufacturing Co. Ltd. 3. Analog Devices, Inc. 4. QUALCOMM, Inc. 5. Comcast Corp.-Class A 6. Thermo Fisher Scientific, Inc. 7. Progressive Corp. (The) 8. International Business Machines Corp. 9. General Electric Co. 10. Cognizant Technology Solutions Corp.-Class A

3.5% 3.2 3.0 2.7 2.5 2.5 2.4 2.3 2.1 2.1

Total Net Assets Total Number of Holdings*

$1.2 billion 56

The Fund’s holdings are subject to change, and there is no assurance that the Fund will continue to hold any particular security. *Excluding money market fund holdings. Data presented here are as of December 31, 2016.

As always, the Fund focuses on companies that provide an attractive return on invested capital, trade at attractive valuations and have management teams with a long-term perspective. In short, we seek to take advantage of the market’s volatile behavior and short-term focus. We believe our conservative approach should position the Fund to navigate the evolving economic backdrop. We thank you for your continued investment in Invesco V.I. Core Equity Fund. 1 2 3 4

Source: Bureau of Economic Analysis Source: Bureau of Labor Statistics Source: Thompson-Reuters Source: US Federal Reserve

The views and opinions expressed in management’s discussion of Fund performance are those of Invesco Advisers, Inc. These views and opinions are subject to change at any time based on factors such as market and economic conditions. These views and opinions may not be relied upon as investment advice or recommendations, or as an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Fund. Statements of fact are from sources considered reliable, but Invesco Advisers, Inc. makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.

See important Fund and, if applicable, index disclosures later in this report.

Invesco V.I. Core Equity Fund

Ronald Sloan Chartered Financial Analyst, Portfolio Manager and Chief Investment Officer of Invesco’s global core equity team, is lead manager of Invesco V.I. Core Equity Fund. He joined Invesco in 1998. Mr. Sloan earned a BS in business administration and an MBA from the University of Missouri. Brian Nelson Chartered Financial Analyst, Portfolio Manager, is manager of Invesco V.I. Core Equity Fund. He joined Invesco in 2004. Mr. Nelson earned a BA from the University of California, Santa Barbara. Assisted by Invesco’s Global Core Equity Team

Your Fund’s Long-Term Performance Results of a $10,000 Investment — Oldest Share Class(es) Fund and index data from 12/31/06 $20,000

$19,824 Russell 1000 Index1 $19,572 S&P 500 Index1 $18,311 Lipper VUF Large-Cap Core Funds Index2

15,000

$17,547 Invesco V.I. Core Equity Fund—Series I Shares

10,000

5,000 12/31/06 12/07

12/08

12/09

12/10

12/11

12/12

12/13

12/14

12/15

12/16

1 Source: FactSet Research Systems Inc. 2 Source: Lipper Inc.

Past performance cannot guarantee comparable future results.

principal value will fluctuate so that you may have a gain or loss when you sell shares. Series I Shares The net annual Fund operating Inception (5/2/94) 7.92% expense ratio set forth in the most 10 Years 5.78 recent Fund prospectus as of the date 5 Years 10.59 of this report for Series I and Series II 1 Year 10.26 shares was 0.81% and 1.06%, respectively.1 The total annual Fund operatSeries II Shares Inception (10/24/01) 6.31% ing expense ratio set forth in the most recent Fund prospectus as of the date 10 Years 5.52 of this report for Series I and Series II 5 Years 10.32 shares was 0.82% and 1.07%, respec1 Year 10.02 tively. The expense ratios presented The performance of the Fund’s Series I above may vary from the expense and Series II share classes will differ primarily due to different class expenses. ratios presented in other sections of this report that are based on expenses The performance data quoted incurred during the period covered by represent past performance and this report. cannot guarantee comparable future Invesco V.I. Core Equity Fund, a results; current performance may be series portfolio of AIM Variable Insurlower or higher. Please contact your ance Funds (Invesco Variable Insurvariable product issuer or financial ance Funds), is currently offered adviser for the most recent month-end through insurance companies issuing variable product performance. Perforvariable products. You cannot purmance figures reflect Fund expenses, chase shares of the Fund directly. reinvested distributions and changes in Performance figures given represent net asset value. Investment return and the Fund and are not intended to reflect Average Annual Total Returns As of 12/31/16

Invesco V.I. Core Equity Fund

actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return. The most recent month-end performance at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. 1 Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2018. See current prospectus for more information.

Invesco V.I. Core Equity Fund’s investment objective is long-term growth of capital. • Unless otherwise stated, information presented in this report is as of December 31, 2016, and is based on total net assets. • Unless otherwise noted, all data provided by Invesco. • To access your Fund’s reports/prospectus, visit invesco.com/fundreports.

Principal risks of investing in the Fund Cash/cash equivalents risk. In rising markets, holding cash or cash equivalents will negatively affect the Fund’s performance relative to its benchmark. Debt securities risk. The prices of debt securities held by the Fund will be affected by changes in interest rates, the creditworthiness of the issuer and other factors. An increase in prevailing interest rates typically causes the value of existing debt securities to fall and often has a greater impact on longer-duration debt securities and higher quality debt securities. Falling interest rates will cause the Fund to reinvest the proceeds of debt securities that have been repaid by the issuer at lower interest rates. Falling interest rates may also reduce the Fund’s distributable income because interest payments on floating rate debt instruments held by the Fund will decline. The Fund could lose money on investments in debt securities if the issuer or borrower fails to meet its obligations to make interest payments and/or to repay principal in a timely manner. Changes in an issuer’s financial strength, the market’s perception of such strength or in the credit rating of the issuer or the security may affect the value of debt securities. The Adviser’s credit analysis may fail to anticipate such changes, which could result in buying a debt security at an inopportune time or failing to sell a debt security in advance of a price decline or other credit event. Derivatives risk. The value of a derivative instrument depends largely on (and is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred to as an underlying asset). In addition to risks relating to the underlying assets, the use of derivatives may include other, possibly greater, risks, including counterparty, leverage and liquidity risks. Counterparty risk is the risk that the counterparty to the derivative contract will default on its obligation to pay the Fund the amount owed or otherwise perform under the derivative contract. Derivatives create leverage risk because they do not require payment up front equal to the economic exposure cre-

Invesco V.I. Core Equity Fund

ated by owning the derivative. As a result, an adverse change in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater than the amount invested in the derivative, which may make the Fund’s returns more volatile and increase the risk of loss. Derivative instruments may also be less liquid than more traditional investments and the Fund may be unable to sell or close out its derivative positions at a desirable time or price. This risk may be more acute under adverse market conditions, during which the Fund may be most in need of liquidating its derivative positions. Derivatives may also be harder to value, less tax efficient and subject to changing government regulation that could impact the Fund’s ability to use certain derivatives or their cost. Also, derivatives used for hedging or to gain or limit exposure to a particular market segment may not provide the expected benefits, particularly during adverse market conditions. Foreign government debt risk. Investments in foreign government debt securities (sometimes referred to as sovereign debt securities) involve certain risks in addition to those relating to foreign securities or debt securities generally. The issuer of the debt or the governmental authorities that control the repayment of the debt may be unable or unwilling to repay principal or interest when due in accordance with the terms of such debt, and the Fund may have limited recourse in the event of a default against the defaulting government. Without the approval of debt holders, some governmental debtors have in the past been able to reschedule or restructure their debt payments or declare moratoria on payments. Foreign securities risk. The Fund’s foreign investments may be adversely affected by political and social instability, changes in economic or taxation policies, difficulty in enforcing obligations, decreased liquidity or increased volatility. Foreign investments also involve the risk of the possible seizure, nationalization or expropriation of the issuer or foreign deposits (in which the Fund could lose its entire investments in a certain market) and the possible adoption of foreign governmental restrictions such as exchange

controls. Unless the Fund has hedged its foreign securities risk, foreign securities risk also involves the risk of negative foreign currency rate fluctuations, which may cause the value of securities denominated in such foreign currency (or other instruments through which the Fund has exposure to foreign currencies) to decline in value. Currency exchange rates may fluctuate significantly over short periods of time. Currency hedging strategies, if used, are not always successful. Management risk. The Fund is actively managed and depends heavily on the Adviser’s judgment about markets, interest rates or the attractiveness, relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. The Fund could experience losses if these judgments prove to be incorrect. Additionally, legislative, regulatory, or tax developments may adversely affect management of the Fund and, therefore, the ability of the Fund to achieve its investment objective. Market risk. The market values of the Fund’s investments, and therefore the value of the Fund’s shares, will go up and down, sometimes rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect the market as a whole. Individual stock prices tend to go up and down more dramatically than those of certain other types of investments, such as bonds. During a general downturn in the financial markets, multiple asset classes may decline in value. When markets perform well, there can be no assurance that specific investments held by the Fund will rise in value. Small- and mid-capitalization companies risks. Small- and mid-capitalization companies tend to be more vulnerable to changing market conditions, may have little or no operating history or track record of success, and may have more limited product lines and markets, less experienced management and fewer financial resources than larger companies. These companies’ securities may be more volatile and less liquid than those of more established companies, and their returns may vary, sometimes significantly, from the overall securities market.

About indexes used in this report The S&P 500® Index is an unmanaged index considered representative of the US stock market. The Russell 1000® Index x is an unmanaged index considered representative of large-cap stocks. The Russell 1000 Index is a trademark/service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co. The Lipper VUF Large-Cap Core Funds Index is an unmanaged index considered representative of large-cap core variable insurance underlying funds tracked by Lipper. The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Other information The returns shown in management’s discussion of Fund performance are based on net asset values calculated for shareholder transactions. Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes, and as such, the net asset values for shareholder transactions and the returns based on those net asset values may differ from the net asset values and returns reported in the Financial Highlights. Additionally, the returns and net asset values shown throughout this report are at the Fund level only and do not include variable product issuer charges. If such charges were included, the total returns would be lower. Industry classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

Invesco V.I. Core Equity Fund

Schedule of Investments(a) December 31, 2016 Shares

Value

Common Stocks & Other Equity Interests–91.75% Advertising–1.43% Publicis Groupe S.A. (France)

252,118

Aerospace & Defense–2.38% General Dynamics Corp. United Technologies Corp.

84,413 130,157

$

17,394,794

14,574,749 14,267,810 28,842,559

Air Freight & Logistics–1.43% United Parcel Service, Inc.–Class B

151,030

Apparel, Accessories & Luxury Goods–3.32% Hanesbrands, Inc. 476,003 LVMH Moet Hennessy Louis Vuitton S.E. (France) 87,325 PVH Corp. 148,400

17,314,079

10,267,385 16,649,310 13,391,616 40,308,311

Asset Management & Custody Banks–1.57% Northern Trust Corp. 213,322 Biotechnology–6.53% AbbVie Inc. Biogen Inc.(b) Celgene Corp.(b) Shire PLC–ADR

290,645 65,159 202,851 111,687

18,996,324

18,200,190 18,477,789 23,480,003 19,029,231 79,187,213

Building Products–1.07% Johnson Controls International PLC Cable & Satellite–2.54% Comcast Corp.–Class A

314,536

12,955,738

445,910

30,790,086

Communications Equipment–1.20% F5 Networks, Inc.(b) 100,911

14,603,840

Consumer Finance–3.51% American Express Co.

42,631,781

Distillers & Vintners–1.21% Diageo PLC (United Kingdom) Diversified Banks–2.99% Svenska Handelsbanken AB– Class A (Sweden) U.S. Bancorp

Shares

232,957

Home Improvement Retail–1.29% Home Depot, Inc. (The)

116,693

15,646,197

69,531

12,638,650

Household Products–1.53% Procter & Gamble Co. (The)

221,451

18,619,600

Housewares & Specialties–1.27% Newell Brands, Inc.

344,715

15,391,525

Hypermarkets & Super Centers–1.16% Wal-Mart Stores, Inc. 204,147

14,110,641

Industrial Conglomerates–2.08% General Electric Co.

799,603

25,267,455

Industrial Machinery–3.20% Illinois Tool Works Inc. Stanley Black & Decker Inc.

151,714 176,879

18,578,896 20,286,253

Household Appliances–1.04% Whirlpool Corp.

$

17,243,477

38,865,149 Insurance Brokers–1.78% Marsh & McLennan Cos., Inc.

318,761

21,545,056

Integrated Oil & Gas–1.51% Suncor Energy, Inc. (Canada)

560,524

18,323,530

Internet Software & Services–1.77% Alphabet Inc.–Class C(b) 27,860

21,502,905

IT Consulting & Other Services–4.41% Cognizant Technology Solutions Corp.– Class A(b) 450,556 International Business Machines Corp. 170,348

25,244,653 28,276,064 53,520,717

575,483

Life & Health Insurance–1.97% AIA Group Ltd. (Hong Kong) 568,463

1,352,839 339,779

4,279,400

23,948,811

Life Sciences Tools & Services–2.45% Thermo Fisher Scientific, Inc. 210,450

29,694,495

Movies & Entertainment–1.53% Time Warner Inc.

192,540

18,585,886

97

23,679,737

202,065

11,851,112

Oil & Gas Equipment & Services–3.41% Halliburton Co. 349,347 Schlumberger Ltd. 115,295

18,896,179 9,679,015

14,710,343

18,804,284 17,454,447 36,258,731

Drug Retail–1.82% Walgreens Boots Alliance, Inc.

266,207

22,031,291

Electric Utilities–0.98% Duke Energy Corp.

153,434

11,909,547

Electronic Manufacturing Services–1.76% TE Connectivity Ltd. 307,608

21,311,082

Multi-Sector Holdings–1.95% Berkshire Hathaway Inc.–Class A(b) Multi-Utilities–0.98% WEC Energy Group, Inc.

See accompanying Notes to Financial Statements which are an integral part of the financial statements. Invesco V.I. Core Equity Fund

Value

Health Care Facilities–1.42% HCA Holdings, Inc.(b)

Shares

Oil & Gas Equipment & Services–(continued) Tenaris S.A.–ADR (Luxembourg) 359,187

Value

$

12,826,568 41,401,762

Oil & Gas Exploration & Production–3.13% Concho Resources Inc.(b) 142,421 Range Resources Corp. 554,622

Systems Software–3.37% Microsoft Corp. Oracle Corp.

331,359 526,863

18,885,025 19,056,812

Wireless Telecommunication Services–1.09% Vodafone Group PLC–ADR (United Kingdom) 540,167 Total Common Stocks & Other Equity Interests (Cost $888,534,235)

90,888 235,653

19,087,389 13,872,892 32,960,281

Property & Casualty Insurance–2.39% Progressive Corp. (The) 815,532

28,951,386

Regional Banks–1.66% First Republic Bank

20,186,123

219,081

Semiconductors–8.90% Analog Devices, Inc. 508,250 QUALCOMM, Inc. 501,370 Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan) 6,873,823

Value

$

20,590,648 20,257,883 40,848,531

37,941,837 Pharmaceuticals–2.72% Allergan PLC(b) Merck & Co., Inc.

Shares

36,909,115 32,689,324

13,196,280 1,113,144,052

Money Market Funds–9.95% Government & Agency Portfolio– Institutional Class, 0.43%(c) Treasury Portfolio–Institutional Class, 0.37%(c)

72,461,378

72,461,378

48,307,586

48,307,586

Total Money Market Funds (Cost $120,768,964)

120,768,964

TOTAL INVESTMENTS–101.70% (Cost $1,009,303,199)

1,233,913,016

OTHER ASSETS LESS LIABILITIES–(1.70)% NET ASSETS–100.00%

(20,617,090) $1,213,295,926

38,378,751 107,977,190

Investment Abbreviations: ADR – American Depositary Receipt Notes to Schedule of Investments: (a) (b) (c)

Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. Non-income producing security. The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of December 31, 2016.

See accompanying Notes to Financial Statements which are an integral part of the financial statements. Invesco V.I. Core Equity Fund

Statement of Assets and Liabilities

Statement of Operations

December 31, 2016

For the year ended December 31, 2016

Assets: Investments, at value (Cost $888,534,235) Investments in affiliated money market funds, at value and cost Total investments, at value (Cost $1,009,303,199)

$1,113,144,052 120,768,964 1,801,721 356,497 1,485,459 420,952 191 1,237,977,836

Liabilities: Payable for: Investments purchased Fund shares reacquired Accrued fees to affiliates Accrued trustees’ and officers’ fees and benefits Accrued other operating expenses Trustee deferred compensation and retirement plans

22,467,598 664,544 1,011,937 683 60,582 476,566

Total liabilities Net assets applicable to shares outstanding Net assets consist of: Shares of beneficial interest Undistributed net investment income Undistributed net realized gain Net unrealized appreciation

Total investment income

24,681,910 $1,213,295,926

Expenses: Advisory fees Administrative services fees Custodian fees Distribution fees — Series II Transfer agent fees Trustees’ and officers’ fees and benefits Reports to shareholders Professional services fees Other Total expenses Less: Fees waived

22,381,074

7,001,094 2,407,284 93,897 444,673 84,530 46,332 7,750 45,852 29,333 10,160,745 (158,304)

Net expenses

10,002,441

Net investment income

12,378,633

Realized and unrealized gain (loss) from: Net realized gain (loss) from: Investment securities Foreign currencies

63,873,949 (67,153) 63,806,796

$ 916,674,097 11,825,531 60,247,353 224,548,945

Change in net unrealized appreciation (depreciation) of: Investment securities Foreign currencies

$1,213,295,926

Net realized and unrealized gain

Net Assets: Series I

$1,033,699,792

Series II

$ 179,596,134

Shares outstanding, no par value, with an unlimited number of shares authorized: Series I Series II

29,890,146 5,265,855

Series I: Net asset value per share

$

34.58

Series II: Net asset value per share

$

34.11

35,580,039 (38,790) 35,541,249

Net increase in net assets resulting from operations

See accompanying Notes to Financial Statements which are an integral part of the financial statements. Invesco V.I. Core Equity Fund

$ 21,921,934 459,140

1,233,913,016

Foreign currencies, at value (Cost $1,838,969) Receivable for: Fund shares sold Dividends Investment for trustee deferred compensation and retirement plans Other assets Total assets

Investment income: Dividends (net of foreign withholding taxes of $604,704) Dividends from affiliated money market funds

99,348,045 $111,726,678

Statement of Changes in Net Assets For the years ended December 31, 2016 and 2015 2016

Operations: Net investment income Net realized gain Change in net unrealized appreciation (depreciation) Net increase (decrease) in net assets resulting from operations Distributions to shareholders from net investment income: Series I Series ll Total distributions from net investment income Distributions to shareholders from net realized gains: Series l Series ll Total distributions from net realized gains Share transactions–net: Series l Series ll Net increase in net assets resulting from share transactions Net increase (decrease) in net assets Net assets: Beginning of year End of year (includes undistributed net investment income of $11,825,531 and $8,131,523, respectively)

$

12,378,633 63,806,796 35,541,249

2015

$

9,312,542 81,552,026 (159,207,239)

111,726,678

(68,342,671)

(7,743,417) (879,585)

(11,263,836) (1,739,714)

(8,623,002)

(13,003,550)

(69,406,591) (12,096,765)

(103,008,374) (19,872,167)

(81,503,356)

(122,880,541)

94,841,524 (2,788,171)

(3,612,941) 25,857,596

92,053,353

22,244,655

113,653,673

(181,982,107)

1,099,642,253

1,281,624,360

$1,213,295,926

$1,099,642,253

Notes to Financial Statements December 31, 2016

NOTE 1—Significant Accounting Policies Invesco V.I. Core Equity Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company consisting of twenty-four separate portfolios, (each constituting a “Fund”). The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class. The Fund’s investment objective is long-term growth of capital. The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”). The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services — Investment Companies. The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements. A. Security Valuations — Securities, including restricted securities, are valued according to the following policy. A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”). Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded. Invesco V.I. Core Equity Fund

B.

C.

D. E.

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments. Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the Adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards. Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans. Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value. The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/ or liquidity of certain Fund investments. Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments. Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held. Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser. The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class. Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. Distributions — Distributions from net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date. Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain

Invesco V.I. Core Equity Fund

F. G.

H.

I.

J.

tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months. The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period. Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets. Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations. Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts. A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund pays an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows: Average Daily Net Assets

First $250 million Over $250 million

Rate

0.65% 0.60%

For the year ended December 31, 2016, the effective advisory fees incurred by the Fund was 0.61%. Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s). The Adviser has contractually agreed, through at least June 30, 2017, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed Invesco V.I. Core Equity Fund

below) of Series I shares to 2.00% and Series II shares to 2.25% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2017. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits. Further, the Adviser has contractually agreed, through at least June 30, 2018, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds. For the year ended December 31, 2016, the Adviser waived advisory fees of $158,304. The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the year ended December 31, 2016, Invesco was paid $268,584 for accounting and fund administrative services and was reimbursed $2,138,700 for fees paid to insurance companies. The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. For the year ended December 31, 2016, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees. The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the year ended December 31, 2016, expenses incurred under the Plan are detailed in the Statement of Operations as Distribution fees. Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI. NOTE 3—Additional Valuation Information GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level: Level 1 — Prices are determined using quoted prices in an active market for identical assets. Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. Level 3 — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. The following is a summary of the tiered valuation input levels, as of December 31, 2016. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments. Common Stocks & Other Equity Interest Money Market Fund Total Investment

Level 1

Level 2

Level 3

Total

$1,019,456,836 120,768,964

$93,687,216 —

$— —

$1,113,144,052 120,768,964

$1,140,225,800

$93,687,216

$—

$1,233,913,016

NOTE 4—Trustees’ and Officers’ Fees and Benefits Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts Invesco V.I. Core Equity Fund

accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund. NOTE 5—Cash Balances The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with State Street Bank and Trust Company, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate. NOTE 6—Distributions to Shareholders and Tax Components of Net Assets Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended December 31, 2016 and 2015: 2016

2015

Ordinary income Long-term capital gain

$ 8,623,002 81,503,356

$ 18,551,080 117,333,011

Total distributions

$90,126,358

$135,884,091

Tax Components of Net Assets at Period-End: 2016

Undistributed ordinary income Undistributed long-term gain Net unrealized appreciation — investments Net unrealized appreciation (depreciation) — other investments Temporary book/tax differences Shares of beneficial interest

$

13,753,597 62,131,535 221,271,325 (60,872) (473,756) 916,674,097

Total net assets

$1,213,295,926

The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation difference is attributable primarily to wash sales. The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits. Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions. The Fund does not have a capital loss carryforward as of December 31, 2016. NOTE 7—Investment Securities The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the year ended December 31, 2016 was $388,466,382 and $418,255,919, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end. Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis Aggregate unrealized appreciation of investment securities Aggregate unrealized (depreciation) of investment securities

$254,986,077 (33,714,752)

Net unrealized appreciation of investment securities

$221,271,325

Cost of investments for tax purposes is $1,012,641,691.

NOTE 8—Reclassification of Permanent Differences Primarily as a result of differing book/tax treatment of foreign currency transactions, on December 31, 2016, undistributed net investment income was decreased by $61,623 and undistributed net realized gain was increased by $61,623. This reclassification had no effect on the net assets of the Fund.

Invesco V.I. Core Equity Fund

NOTE 9—Share Information Summary of Share Activity Years ended December 31, 2016(a)

2015

Shares

Amount

Shares

Amount

Sold: Series I Series II

4,633,218 229,629

$ 163,930,451 7,596,362

1,187,179 510,959

$ 45,584,411 20,186,238

Issued as reinvestment of dividends: Series I Series II

2,245,997 382,783

77,150,008 12,976,350

3,461,745 662,941

114,272,210 21,611,881

Reacquired: Series I Series II

(4,224,160) (680,023)

(146,238,935) (23,360,883)

(4,152,164) (414,744)

(163,469,562) (15,940,523)

Net increase in share activity

2,587,444

$ 92,053,353

1,255,916

$ 22,244,655

(a)

There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 56% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing and administrative services. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

NOTE 10—Financial Highlights The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated. Net gains (losses) Net asset on securities Dividends Distributions value, Net (both Total from from net from net Net asset beginning investment realized and investment investment realized Total value, end Total (a) of period income unrealized) operations income gains distributions of period return(b) Series I Year ended 12/31/16 $33.84 $0.39 Year ended 12/31/15 41.00 0.32 Year ended 12/31/14 38.43 0.40 Year ended 12/31/13 30.14 0.31 Year ended 12/31/12 26.72 0.37 Series II Year ended 12/31/16 33.40 0.30 Year ended 12/31/15 40.53 0.22 Year ended 12/31/14 38.03 0.30 Year ended 12/31/13 29.86 0.22 Year ended 12/31/12 26.51 0.30 (a) (b)

(c) (d)

$ 3.07 (2.79) 2.72 8.47 3.34 3.03 (2.75) 2.67 8.39 3.31

$ 3.46 $(0.28) (2.47) (0.46) 3.12 (0.35) 8.78 (0.49) 3.71 (0.29) 3.33 (2.53) 2.97 8.61 3.61

(0.18) (0.37) (0.27) (0.44) (0.26)

$(2.44) (4.23) (0.20) — — (2.44) (4.23) (0.20) — —

Ratio of Ratio of expenses expenses to average to average net net assets assets without Net assets, with fee waivers fee waivers end of period and/or expenses and/or expenses (000’s omitted) absorbed absorbed

$(2.72) $34.58 10.26% $1,033,700 (4.69) 33.84 (5.75) 921,516 (0.55) 41.00 8.12 1,096,219 (0.49) 38.43 29.25 1,167,023 (0.29) 30.14 13.88 1,033,655 (2.62) (4.60) (0.47) (0.44) (0.26)

34.11 10.02 33.40 (5.98) 40.53 7.82 38.03 28.94 29.86 13.61

179,596 178,126 185,406 158,700 109,213

Ratio of net investment income to average Portfolio net assets turnover(c)

0.84%(d) 0.89 0.88 0.88 0.88

0.85%(d) 0.90 0.90 0.90 0.90

1.11%(d) 0.81 1.01 0.89 1.29

38% 45 35 25 44

1.09(d) 1.14 1.13 1.13 1.13

1.10(d) 1.15 1.15 1.15 1.15

0.86(d) 0.56 0.76 0.64 1.04

38 45 35 25 44

Calculated using average shares outstanding. Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Total returns are not annualized for periods less than one year, if applicable, and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns. Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. Ratios are based on average daily net assets (000’s omitted) of $968,147 and $177,869 for Series I and Series II shares, respectively.

Invesco V.I. Core Equity Fund

Report of Independent Registered Public Accounting Firm To the Board of Trustees of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) and Shareholders of the Invesco V.I. Core Equity Fund: In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the Invesco V.I. Core Equity Fund (one of the portfolios constituting the AIM Variable Insurance Funds (Invesco Variable Insurance Funds), hereafter referred to as the “Fund”) as of December 31, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities as of December 31, 2016 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PRICEWATERHOUSECOOPERS LLP

Houston, Texas February 14, 2017

Invesco V.I. Core Equity Fund

Calculating your ongoing Fund expenses Example As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period July 1, 2016 through December 31, 2016. The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower. Actual expenses The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period. Hypothetical example for comparison purposes The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

ACTUAL

1 2

Class

Beginning Account Value (07/01/16)

Ending Account Value (12/31/16)1

Expenses Paid During Period2

Series I Series II

$1,000.00 1,000.00

$1,055.60 1,054.40

$4.03 5.32

HYPOTHETICAL (5% annual return before expenses) Ending Expenses Account Value Paid During (12/31/16) Period2

$1,021.22 1,019.96

$3.96 5.23

Annualized Expense Ratio

0.78% 1.03

The actual ending account value is based on the actual total return of the Fund for the period July 1, 2016 through December 31, 2016, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 184/366 to reflect the most recent fiscal half year.

Invesco V.I. Core Equity Fund

Tax Information Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisors. The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement. The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended December 31, 2016: Federal and State Income Tax Long-Term Capital Gain Distributions $81,503,356 Corporate Dividends Received Deduction* 100.00% U.S. Treasury Obligations* 0.00% * The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year.

Invesco V.I. Core Equity Fund

Trustees and Officers The address of each trustee and officer is AIM Variable Insurance Funds (Invesco Variable Insurance Funds) (the “Trust”), 11 Greenway Plaza, Suite 1000, Houston, Texas 77046-1173. The trustees serve for the life of the Trust, subject to their earlier death, incapacitation, resignation, retirement or removal as more specifically provided in the Trust’s organizational documents. Each officer serves for a one year term or until their successors are elected and qualified. Column two below includes length of time served with predecessor entities, if any.

Name, Year of Birth and Position(s) Held with the Trust

Number of Funds in Fund Complex Overseen by Trustee

Other Directorship(s) Held by Trustee During Past 5 Years

Trustee and/ or Officer Since

Principal Occupation(s) During Past 5 Years

2007

Executive Director, Chief Executive Officer and President, Invesco Ltd. (ultimate parent of Invesco and a global investment management firm); Advisor to the Board, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Trustee, The Invesco Funds; Vice Chair, Investment Company Institute; and Member of Executive Board, SMU Cox School of Business Formerly: Chairman and Chief Executive Officer, Invesco Advisers, Inc. (registered investment adviser); Director, Chairman, Chief Executive Officer and President, Invesco Holding Company (US) Inc. (formerly IVZ Inc.) (holding company), Invesco Group Services, Inc. (service provider) and Invesco North American Holdings, Inc. (holding company); Director, Chief Executive Officer and President, Invesco Holding Company Limited (parent of Invesco and a global investment management firm); Director, Invesco Ltd.; Chairman, Investment Company Institute and President, Co-Chief Executive Officer, CoPresident, Chief Operating Officer and Chief Financial Officer, Franklin Resources, Inc. (global investment management organization)

144

None

Head of the Americas and Senior Managing Director, Invesco Ltd.; Director, Co-Chairman, Co-President and Co-Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Chairman, Chief Executive Officer and President, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.) (financial services holding company); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) (registered transfer agent) Chief Executive Officer, Invesco Corporate Class Inc. (corporate mutual fund company) Director, Chairman and Chief Executive Officer, Invesco Canada Ltd. (formerly known as Invesco Trimark Ltd./Invesco Trimark Ltèe) (registered investment adviser and registered transfer agent); Trustee and Senior Vice President, The Invesco Funds; Director, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management). Formerly: Director, Chief Executive Officer and President, Van Kampen Exchange Corp.; President and Principal Executive Officer, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Invesco Management Trust); Executive Vice President, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Invesco Management Trust only); Director and President, INVESCO Funds Group, Inc. (registered investment adviser and registered transfer agent); Director and Chairman, IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.) (registered broker dealer); Director, President and Chairman, Invesco Inc. (holding company), Invesco Canada Holdings Inc. (holding company), Trimark Investments Ltd./Placements Trimark Ltèe and Invesco Financial Services Ltd/ Services Financiers Invesco Ltèe; Chief Executive Officer, Invesco Canada Fund Inc. (corporate mutual fund company); Director and Chairman, Van Kampen Investor Services Inc.; Director, Chief Executive Officer and President, 1371 Preferred Inc. (holding company) and Van Kampen Investments Inc.; Director and President, AIM GP Canada Inc. (general partner for limited partnerships) and Van Kampen Advisors, Inc.; Director and Chief Executive Officer, Invesco Trimark Dealer Inc. (registered broker dealer); Director, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.) (registered broker dealer); Manager, Invesco PowerShares Capital Management LLC; Director, Chief Executive Officer and President, Invesco Advisers, Inc.; Director, Chairman, Chief Executive Officer and President, Invesco AIM Capital Management, Inc.; President, Invesco Trimark Dealer Inc. and Invesco Trimark Ltd./Invesco Trimark Ltèe; Director and President, AIM Trimark Corporate Class Inc. and AIM Trimark Canada Fund Inc.; Senior Managing Director, Invesco Holding Company Limited; Director and Chairman, Fund Management Company (former registered broker dealer); President and Principal Executive Officer, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), and Short-Term Investments Trust only); President, AIM Trimark Global Fund Inc. and AIM Trimark Canada Fund Inc.

144

None

Interested Persons Martin L. Flanagan1 — 1960 Trustee

Philip A. Taylor2 — 1954 2006 Trustee and Senior Vice President

1

Mr. Flanagan is considered an interested person (within the meaning of Section 2(a)(19) of the 1940 Act) of the Trust because he is an officer of the Adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the Adviser.

2

Mr. Taylor is considered an interested person (within the meaning of Section 2(a)(19) of the 1940 Act) of the Trust because he is an officer and a director of the Adviser.

Invesco V.I. Core Equity Fund

Trustees and Officers—(continued) Name, Year of Birth and Position(s) Held with the Trust

Number of Funds in Fund Complex Overseen by Trustee

Other Directorship(s) Held by Trustee During Past 5 Years

Trustee and/ or Officer Since

Principal Occupation(s) During Past 5 Years

Bruce L. Crockett — 1944 Trustee and Chair

1993

Chairman, Crockett Technologies Associates (technology consulting company) Formerly: Director, Captaris (unified messaging provider); Director, President and Chief Executive Officer, COMSAT Corporation; Chairman, Board of Governors of INTELSAT (international communications company); ACE Limited (insurance company); Independent Directors Council and Investment Company Institute

144

Chairman of the Audit Committee, ALPS (Attorneys Liability Protection Society) (insurance company) and Member of the Audit Committee, Ferroglobe PLC (metallurgical company) and Investment Company Institute; Member of the Executive Committee and Chair of the Governance Committee, Independent Directors Council

David C. Arch — 1945 Trustee

2010

Chairman of Blistex Inc., a consumer health care products manufacturer

144

Board member of the Illinois Manufacturers’ Association

James T. Bunch — 1942 Trustee

2004

Managing Member, Grumman Hill Group LLC (family office/private equity investments) Formerly: Chairman of the Board, Denver Film Society, Chairman of the Board of Trustees, Evans Scholarship Foundation; Chairman, Board of Governors, Western Golf Association

144

Trustee, Evans Scholarship Foundation; Chairman of the Board, Denver Film Society

Jack M. Fields — 1952 Trustee

1997

Chief Executive Officer, Twenty First Century Group, Inc. (government affairs company); and Discovery Learning Alliance (non-profit) Formerly: Owner and Chief Executive Officer, Dos Angeles Ranch L.P. (cattle, hunting, corporate entertainment); Director, Insperity, Inc. (formerly known as Administaff); Chief Executive Officer, Texana Timber LP (sustainable forestry company); Director of Cross Timbers Quail Research Ranch (nonprofit); and member of the U.S. House of Representatives

144

None

Eli Jones — 1961 Trustee

2016

Professor and Dean, Mays Business School — Texas A&M University Formerly: Professor and Dean, Walton College of Business, University of Arkansas and E.J. Ourso College of Business, Louisiana State University and Director, Arvest Bank

144

Director of Insperity, Inc. (formerly known as Administaff)

Prema Mathai-Davis — 1950 Trustee

1998

Retired. Formerly: Chief Executive Officer, YWCA of the U.S.A.

144

None

Larry Soll — 1942 Trustee

2004

Retired. Formerly: Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)

144

None

Raymond Stickel, Jr. — 1944 Trustee

2005

Retired. Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios) and Partner, Deloitte & Touche

144

None

Robert C. Troccoli — 1949 Trustee

2016

Adjunct Professor, University of Denver — Daniels College of Business Formerly: Senior Partner, KPMG LLP

144

None

Sheri Morris — 1964 President, Principal Executive Officer and Treasurer

1999

President, Principal Executive Officer and Treasurer, The Invesco Funds; Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); and Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust, and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust Formerly: Vice President and Principal Financial Officer, The Invesco Funds; Vice President, Invesco AIM Advisers, Inc., Invesco AIM Capital Management, Inc. and Invesco AIM Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco AIM Capital Management, Inc. and Invesco AIM Private Asset Management, Inc.; and Treasurer, PowerShares ExchangeTraded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust

N/A

N/A

Russell C. Burk — 1958 Senior Vice President and Senior Officer

2005

Senior Vice President and Senior Officer, The Invesco Funds

N/A

N/A

Independent Trustees

Other Officers

Invesco V.I. Core Equity Fund

Trustees and Officers—(continued) Name, Year of Birth and Position(s) Held with the Trust

Number of Funds in Fund Complex Overseen by Trustee

Other Directorship(s) Held by Trustee During Past 5 Years

Trustee and/ or Officer Since

Principal Occupation(s) During Past 5 Years

John M. Zerr — 1962 Senior Vice President, Chief Legal Officer and Secretary

2006

Director, Senior Vice President, Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President and Secretary, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.); Director, Vice President and Secretary, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) Senior Vice President, Chief Legal Officer and Secretary, The Invesco Funds; Managing Director, Invesco PowerShares Capital Management LLC; Director, Secretary and General Counsel, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Secretary and General Counsel, Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.) and Chief Legal Officer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust, and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust Formerly: Director, Secretary, General Counsel and Senior Vice President, Van Kampen Exchange Corp.; Director, Vice President and Secretary, IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.); Director and Vice President, INVESCO Funds Group, Inc.; Director and Vice President, Van Kampen Advisors Inc.; Director, Vice President, Secretary and General Counsel, Van Kampen Investor Services Inc.; Director, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.); Director, Senior Vice President, General Counsel and Secretary, Invesco AIM Advisers, Inc. and Van Kampen Investments Inc.; Director, Vice President and Secretary, Fund Management Company; Director, Senior Vice President, Secretary, General Counsel and Vice President, Invesco AIM Capital Management, Inc.; Chief Operating Officer and General Counsel, Liberty Ridge Capital, Inc. (an investment adviser); Vice President and Secretary, PBHG Funds (an investment company) and PBHG Insurance Series Fund (an investment company); Chief Operating Officer, General Counsel and Secretary, Old Mutual Investment Partners (a broker-dealer); General Counsel and Secretary, Old Mutual Fund Services (an administrator) and Old Mutual Shareholder Services (a shareholder servicing center); Executive Vice President, General Counsel and Secretary, Old Mutual Capital, Inc. (an investment adviser); and Vice President and Secretary, Old Mutual Advisors Funds (an investment company)

N/A

N/A

Karen Dunn Kelley — 1960 Senior Vice President

1993

Senior Managing Director, Investments, Invesco Ltd.; Director, Co-President, Co-Chief Executive Officer, and Co-Chairman, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Chairman and Director, Invesco Senior Secured Management, Inc.; Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.); Executive Vice President, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.); Director, Invesco Mortgage Capital Inc.; Senior Vice President, The Invesco Funds Formerly: Director, Invesco Management Company Limited; Vice President, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Invesco Management Trust); and President and Principal Executive Officer, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), ShortTerm Investments Trust and Invesco Management Trust only); Director and President, INVESCO Asset Management (Bermuda) Ltd., Director, INVESCO Global Asset Management DAC (formerly known as INVESCO Global Asset Management Limited) and INVESCO Management S.A.; Senior Vice President, Van Kampen Investments Inc. and Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director and President, Fund Management Company; Chief Cash Management Officer, Director of Cash Management, Senior Vice President, and Managing Director, Invesco AIM Capital Management, Inc.; Director of Cash Management, Senior Vice President, and Vice President, Invesco Advisers, Inc. and Vice President, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), and Short-Term Investments Trust only)

N/A

N/A

Kelli Gallegos — 1970 Vice President, Principal Financial Officer and Assistant Treasurer

2008

Vice President, Principal Financial Officer and Assistant Treasurer, The Invesco Funds; Assistant Treasurer, Invesco PowerShares Capital Management LLC, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust, and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust Formerly: Assistant Vice President, The Invesco Funds

N/A

N/A

Tracy Sullivan — 1962 Vice President, Chief Tax Officer and Assistant Treasurer

2008

Vice President, Chief Tax Officer and Assistant Treasurer, The Invesco Funds; Assistant Treasurer, Invesco PowerShares Capital Management LLC, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust, and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust Formerly: Assistant Vice President, The Invesco Funds

N/A

N/A

Other Officers—(continued)

Invesco V.I. Core Equity Fund

Trustees and Officers—(continued) Name, Year of Birth and Position(s) Held with the Trust

Number of Funds in Fund Complex Overseen by Trustee

Other Directorship(s) Held by Trustee During Past 5 Years

Trustee and/ or Officer Since

Principal Occupation(s) During Past 5 Years

Crissie M. Wisdom — 1969 Anti-Money Laundering Compliance Officer

2013

Anti-Money Laundering Compliance Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser), Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.), Invesco Distributors, Inc., Invesco Investment Services, Inc., Invesco Management Group, Inc., The Invesco Funds, and PowerShares ExchangeTraded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed ExchangeTraded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust; Anti-Money Laundering Compliance Officer and Bank Secrecy Act Officer, INVESCO National Trust Company and Invesco Trust Company; and Fraud Prevention Manager and Controls and Risk Analysis Manager for Invesco Investment Services, Inc. Formerly: Anti-Money Laundering Compliance Officer, Van Kampen Exchange Corp.

N/A

N/A

Robert R. Leveille — 1969 Chief Compliance Officer

2016

Chief Compliance Officer, Invesco Advisers, Inc. (registered investment adviser); and Chief Compliance Officer, The Invesco Funds Formerly: Chief Compliance Officer, Putnam Investments and the Putnam Funds

N/A

N/A

Other Officers—(continued)

The Statement of Additional Information of the Trust includes additional information about the Fund’s Trustees and is available upon request, without charge, by calling 1.800.959.4246. Please refer to the Fund’s Statement of Additional Information for information on the Fund’s sub-advisers. Office of the Fund 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173

Investment Adviser Invesco Advisers, Inc. 1555 Peachtree Street, N.E. Atlanta, GA 30309

Distributor Invesco Distributors, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173

Auditors PricewaterhouseCoopers LLP 1000 Louisiana Street, Suite 5800 Houston, TX 77002-5678

Counsel to the Fund Stradley Ronon Stevens & Young, LLP 2005 Market Street, Suite 2600 Philadelphia, PA 19103-7018

Counsel to the Independent Trustees Goodwin Procter LLP 901 New York Avenue, N.W. Washington, D.C. 20001

Transfer Agent Invesco Investment Services, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173

Custodian State Street Bank and Trust Company 225 Franklin Street Boston, MA 02110-2801

Invesco V.I. Core Equity Fund